VACATION HOME EXCHANGE HANDBOOK

In response to increased activity in many vacation markets, Asset Preservation has created a brand-new Vacation Home Handbook that covers many tax issues related to the ownership and sale of a vacation or second home. This brochure is very comprehensive, contains hyperlinks to key tax code sections and provides useful guidance to property owners, real estate professionals, closers, attorneys and CPAs in resort communities and vacation home marketplaces throughout the United States.

Reverse Exchange Comparisons

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COMPARISON OF THE TWO DIFFERENT PARKING ARRANGEMENT FORMATS

Sometimes a taxpayer may want to perform a parking arrangement called a reverse exchange in which the replacement property is purchased before closing on the sale of the relinquished property. There are many reasons why a taxpayer may need the benefits of a reverse exchange, including being in a seller’s market where recently listed properties are quickly under contract with a buyer or where there is little inventory. Revenue Procedure 2000-37 provides guidelines and safe harbor treatment for a taxpayer to perform a parking arrangement exchange within 180-calendar days from the Exchange Accommodation Titleholder’s (EAT) purchase of the replacement property.

REPLACEMENT PROPERTY PARKED

The EAT acquires title to the replacement property with funds the taxpayer causes to be loaned to the EAT. Within 180 days, the taxpayer sells the relinquished property and the EAT transfers the replacement property to the taxpayer. This is sometimes referred to as the “exchange last” reverse exchange format.

The taxpayer conveys the relinquished property to the EAT and then the taxpayer acquires the replacement property under a simultaneous exchange format. During the 180 days, the EAT remains on title to the relinquished property until it is sold to a purchaser. This is sometimes referred to as the “exchange first” reverse exchange format.

Positives of the Relinquished Property Parked

Loan and purchase of replacement property is easier since the loan is directly to the taxpayer.

Possibly less expensive on transfer tax for relinquished property.

Negatives of the Relinquished Property Parked

Equity and debt should match at the time of the replacement property purchase to avoid boot.

1031 Exchange eNews

We are so thrilled with your assistance with the reverse 1031 exchange. You knew exactly when and how to do each step and how to keep us moving in the right direction. You could explain issues to us that we had difficulty comprehending. We would be delighted to use API again and also recommend the firm to others.

Jill H., Maine

So friendly, personal, efficient and competent (and painless).

Richard G., New York

This is our 4th property exchange with you. Every one of them has been a "10" experience.

Berry, Colorado

One phone call and they took care of everything, no questions - no problems.

Douglas B., Texas

Our exchange paperwork was flawless and always on time. Thank you.

William T., California

Appreciated the instant availability whenever I had a question. Also, greatly appreciated the timely notices and reminders. Thank you for a job well done.

Alice S., Wisconsin

Thank you for the very professional way in which my transactions were handled, making this a pleasant and efficient process. Thanks as well to all your associates who were very gracious to work with.

Lori H., Massachusetts

Your team is great!!! You guys deliver on what you promote when talking about the company at industry events – Thank you!

A.L., Los Angeles

We greatly appreciate the business we do with you and Asset Preservation and your consummate professionalism. No doubt we look forward to doing a lot more business together!

Andy S., New Jersey

I wanted you both to know how much I appreciate you both and all the hard work you do for me and my clients. The reason I recommend you to all my clients is because you are NOTHING SHY OF AWESOME!

Sandy R., California

Thank you for your assistance. You made my client a very happy woman.

Cristopher C., New York

You just helped me obtain a new customer! Looking forward to working with you on this one. Thanks again!

Bill K., Texas

Excellent service. Responsive, professional, and easy to do business with. Everyone I worked with was excellent!

Ferol L., San Diego

Thank you for always being responsive and prompt to my needs.

Anthony C., New York

Thank you so much. You helped make a difficult and complicated situation a pleasure, thank you!

Sandra C., California

I had such efficient people handling the paperwork and walking me through this 1031 process. I would definitely consider doing it again.

Pat H., California

We appreciate everyone's efforts and diligence. The coaching to avoid boot was awesome. Great service!

Allison L., Santa Monica

This is my second 1031 exchange with API and again you hit it out of the park. Thanks for great work.

Beverly W., Colorado

You and your office are also a pleasure to work with. Thank You.

Lisa M., Bronx

I’m not just a client, I’m also a real estate broker. When investor-clients and other real estate professionals ask who I recommend to facilitate a 1031 exchange, I will enthusiastically say – Asset Preservation. Thank you for a wonderful experience!